European stocks may have a chance of recovery if political leaders can make progress on resolving the debt issue, but analyzing earnings will be critical for investors to navigate risk.
In today’s post-housing bubble environment, the long-awaited recovery has failed to build a solid foundation. The high unemployment rate, declines in household income, and significantly tighter credit conditions have left both existing and new home sales close to recessionary levels in the United States.
With its meteoric rise to become the world’s second-largest economy, China is an engine of global growth and is currently expanding much faster than developed nations still struggling to recover from the recession. Although today China is facing headwinds such as nagging inflation, Putnam sees investment opportunities in many industry sectors.
Developments in European sovereign debt markets have taken a significant turn recently, and the risk that the crisis could affect financial markets has increased.
China’s GDP soared 11.9% in the first quarter of 2010. And that growth is likely to continue to have a significant impact on certain commodities that China must import. How does China’s growth affect natural resources? China imports a significant share of the world’s commodities. China ranks third in the world in thermal coal reserves.
On the heels of the Lehman Brothers bankruptcy in late 2008, the U.S. Treasury and Federal Reserve Board (the “Fed”) rolled out a number of unprecedented programs designed to inject liquidity into the financial system. The mortgage purchase program began in conjunction with the Troubled Asset Relief Program, or “TARP,” and both were designed to